BDC Venture Capital dedicates another 6 million for new Canadian tech entrepreneurs

MONTREAL, April 24, 2012 /CNW Telbec/ - The Business Development Bank of
Canada's venture capital arm will issue up to six million dollars in
convertible notes over two years to graduates of FounderFuel, the
Montreal-based startup accelerator program. Some 40 young enterprises
from all over the country in the web, mobile, software as a service
(SaaS), and gaming fields, will each be eligible for a $150 000 BDC
convertible note upon their successful completion of FounderFuel's
12-week, mentor-driven business "boot camp". Convertible notes are
short term loans that are usually converted into shares later on in the
company's life. This investment is part of BDC Venture Capital's larger
commitment towards accelerators across the country, a key element of
its strategy to support tech enterprises in their early, most fragile,
stage.

"Entrepreneurship and venture capital investments are on the rebound in
Canada; but there will always remain this 6 to 12-month critical period
for many new companies when the start-up capital from the partners
themselves, their families and friends starts drying up and before
financing from venture capitalists and angels can be secured. Too many
promising companies have not made it to the next stage of financing for
lack of operating capital," explains Senia Rapisarda, Vice President,
Strategic Investments and Initiatives at BDC Venture Capital. "Canadian
tech entrepreneurs should be confident they can compete with the best
in the world, but they need a strong, supportive "ecosystem" to get the
edge. Our convertible notes program, which is one of the means we use
to bolster the Canadian venture ecosystem, is bridging a financing gap
that few institutional and private investors can assume".

FounderFuel, which was created by venture fund Real Ventures, is one of
several accelerator programs that have emerged across Canada in the
last year. Accelerator programs offer a select group of entrepreneurs
the opportunity to bring their new businesses to "venture-ready" level
in a short timeframe. During their 12-week stay in Montreal,
FounderFuel participants spend their time in the high-octane
environment of the program headquarters housed in a downtown historical
building called Notman House. Over a hundred startup veterans are
available to mentor the entrepreneurs and help them refine and
accelerate their businesses.

"Our current cohort is very excited about this development," says Ian
Jeffrey, General Manager of FounderFuel. "The potential to obtain
substantial financing right off the bat is giving them an additional
incentive to make as much progress with their businesses as they can
during the build-up to Demo Day". "Demo Days" are the accelerators'
popular public graduation ceremonies. They are attended by hundreds,
including venture capitalists and angels from all over the world who
come to discover the best and the brightest.

Thanks to connections made at FounderFuel's previous Demo Day last
November, members of that cohort (Playerize, OOHLALA, Wavo and
Seevibes) have successfully raised close to $2.5 million. The Demo Day
for FounderFuel's current crop, which is open to all, will take place
the morning of May 23 in Montreal (free registration at http://founderfuelspring2012demoday.eventbrite.ca), just before another important gathering for the Canadian tech startup
scene, C100's AccelerateMTL. It is also on that day that the BDC
Venture Capital and FounderFuel joint committee decides which of this
session's teams will be offered the convertible notes. The process will
then start over with a new class when FounderFuel's Fall 2012 session
begins August 13. Budding Canadian tech entrepreneurs have until June
15 to submit their application directly at http://founderfuel.com/en/apply.

About BDC Venture Capital BDC Venture Capital is a major venture capital investor in Canada with more than $1 billion
in current and planned investments. It is active at every stage of a
company's development cycle, from seed through expansion, with a focus
on innovative technology-based Canadian companies with high growth
potential, which offer unique products or services and are positioned
to become dominant players in their market. Investing primarily in
companies involved in Energy/Cleantech, Health and Information
Technology, BDC VC makes both direct and indirect investments, often
through investment syndicates with industry partners. It also
undertakes strategic initiatives and investments targeted at
stimulating the Canadian venture capital and innovation ecosystems.http://bdc.ca/venturecapital

About FounderFuelFounderFuelis a mentor-driven startup accelerator program based in Montreal focused
on web, saas, mobile, and gaming. The FounderFuel program features two
cohorts a year (20 teams), has a network of 100+ mentors,
and culminates on Demo Day in Montreal with investment pitches to a
room full of investors from all over the world. http://founderfuel.com